Harley Davidson's Competitive Advantage

Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been

Answer: H-D using “Differentiation Strategy” by offering its heavyweight motorcycle through the distinctive designs. H-D are also a leader in the heavyweight motorcycle manufacturers industry and it has more than 100 years old in this market, also its American icon make H-D become traditional brand. Due to H-D becoming the traditional brand in American made version, the consumers perceive that H-D mean quality. Consumers will choosing H-D products because of their high quality products and demand

Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.

The three statics of Harley-Davidson’s is; revenue, growth rate, and number of units that are sold. The manufacturer of the United States heavyweight motorcycle division has obtained, arrested, and achieved approximately fifty-four percent of the broad United States motorcycle exchange. Harley-Davidson has fifty-two percent share of the broad motorcycle exchange in which IBISWorld INC. has estimated that it will generate six point nine billion dollars in revenue this year, (Forbes, (2014).

Upon initial review of this evidence, it would appear that Harley Davidson has two distinct market segments, with differentiated needs. While there are clearly two segmented markets that need to be addressed, many of the needs of each segment can be handled with a single strategy. Finding the right bike, creating a culture for riders, and providing a means to get away are all important to the current prime market. It just so happens that these features are also important to the new target segment: young people. Fortunately, with some tweaking, current products can be made appealing to a totally new audience. There are three main areas of focus for this new brand management strategy. First, the barriers to entry and perceived barriers to entry must be lowered. Second, riders and potential riders must feel that they will have a place within the culture. Finally, riders must feel that they are being offered an opportunity to find their own experience.

Harley managed to remain profitable by introducing larger, more powerful motorcycles, becoming the undisputed leader of the market with over 60% market share. It earned a commanding lead of 50% market share in the United States and 32% globally in the 1950’s. The Harley motorcycle became a part of American iconography and was associated with the U.S. flag and the bald eagle, America’s national symbol. This resulted in unprecedented brand loyalty, especially among U.S. customers, which is prevailing till today.

Harley Davidson Company has a long history of building motorcycles that have worked to actually shape a part of the American culture. Its product positioning and marketing strategies have served as a prime example for any company to imitate. Harley Davidson has developed immense levels of brand loyalty over the years. However, the company has also been burdened by the recent economic downturn and now is going through something of a rebuilding phase as it tries to determine its best course forward. This analysis will conduct a SWOT assessment of Harley Davidson's current position and make recommendations on how Harley can continue to develop the next phase of its iconic American brand.

Good relationships, continuous improvement, employee and management involvement, team building or employee training and empowerment are not just words out of a management book for Harley-Davidson. Only by adopting those management techniques and building a solid base between the management and the Unions/employees made it possible for Harley-Davidson to improve its management processes. While management 's responsibility is to build

Then in return, these stakeholders will continue purchasing their products throughout their life time due to their unforgettable experience they have doing business with Harley-Davidson. Harley-Davidson believes the backbone in their business is their strong brand name and their loyalty with customers.

Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and

Harley-Davidson, Inc. has a long-standing culture of relationship nurturing with its customers – of association with its customers on personal levels. Owing to this, customers look at Harley-Davidson as not only a company, but as also a family to whom they owe their loyalty. Harley-Davidson is an example of a company which has a loyal (brand) following and its customers aid in future sales via marketing based on the consumer. The company has been doing business since 1903; according to its website, “Four young men experimented with internal combustion in a tiny wooden shed. Not only did the shed not burn, but the motorcycle they built went on to serve over 100,000 miles” (Harley Davidson, n.d., p.1).

The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.

After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.

Harley Davidson was seen in America as a company that produced motorcycles with “raw power.” The company was founded by Arthur and Walter Davidson and William Harley in 1903. In 1918, Harley Davidson had become the largest motorcycle producing company in the world. Their production totaled 28,000 motorcycles. Production continued to increase with the onset of World War II and the military use of Harley’s motorcycles. The mystique of the product had a tough sense to it with famous actors such as James Dean and Marlin Brando sporting the bikes. After World War II, foreign competitors became interested in the motorcycle market. Japanese competitors entered the market in 1959; Harley Davidson executives did nothing to

Harley-Davidson Motor Company was founded in 1903. Harley-Davidson is the only major US maker of motorcycles and the nation 's number one seller of heavyweight motorcycles. By 1920 the company has become the largest motorcycle manufacturer in the world, with productions over 28,000 motorcycles per year and dealers in 67 countries. In 1998 Harley-Davidson shipped 150,818 motorcycles, a 14 percent increase over 1997, and a step closer to its ambitious plan 2003-the vision to dramatically increase production capacity by the company’s 100th anniversary. Harley-Davidson offers 24 models of touring and custom cycles. Harley has held the largest share of the U.S. heavyweight motorcycle market since 1986. Harley Davidson competed primarily in the